Venezuela and China expand oil blending plant amid US sanctions

Venezuela and China amid increased US sanctions have launched a facility that will increase oil production in Venezuela by mixing it with lighter grades, the event was broadcast on Twitter by President Nicolas Maduro.

This is a joint venture between PDVSA and the Chinese CNPC called Sinovensa, located in the Orinoco belt in southern Venezuela. It produces Merey oil for export.

Representatives of the Chinese Embassy and CNPC attended the meeting with Maduro. “Today we have good news. After intensive work today, we are launching the expansion of the oil mixing plant, this is a joint investment by CNPC and PDVSA,” said the President of Venezuela.

The country’s oil minister, Manuel Quevedo, in turn, noted that the project will expand the production of diluted oil from 125.5 to 220 thousand barrels, processing no more than 105, but 165 thousand barrels of heavy oil per day. According to the minister, at the first stage, investments amounted to $ 800 million, but then it is planned to expand them by another $ 1 billion.

The White House said Tuesday that US President Donald Trump had signed a decree blocking the assets of Venezuelan authorities in US jurisdictions, including the country’s central bank and the state-owned oil company PDVSA. In addition, the decree permits the imposition of sanctions against foreign nationals who provide support, goods or services to any persons under sanctions, including the Venezuelan authorities.

The United States on January 28 announced the imposition of sanctions on the Venezuelan national oil and gas company PDVSA, blocking the company’s assets and interests in its jurisdiction for $ 7 billion, and also banned transactions with them. According to the White House, another 11 billion dollars will make up losses in oil supplies.